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Transportation Commission Awards Economic Development Grants

For Immediate Release: 
Monday, Dec. 20, 2021

Julie Stevenson, Strategic Communications Coordinator, 605-773-2898



PIERRE, S.D. – The South Dakota Transportation Commission awarded over $3.9 million in economic development grants for infrastructure improvements to counties and smaller communities across South Dakota. The economic development grant program funds awarded at the Transportation Commission meeting on Thursday, Dec. 16, 2021, will improve roads leading to schools, main business areas, hospitals, grain elevators, and other economic areas in the communities. The grants pay for 80 percent of the construction costs, up to a maximum of $600,000. The Commission awards the economic development grants in the fall of each year.


“The economic development grants are an important part of the department’s overall grant program to assist local governments in improving their infrastructure across the state,” says Secretary Joel Jundt. “Without these state grant funds, some of these communities would not have the financial ability to improve access that fosters economic development and quality of life.”


Community Access Grants:

  • City of Freeman - $600,000 for Main and Railway Streets which serve the business area and the local elevator.
  • City of Lemmon - $600,000 for 1st Street SE, 2nd Street, and 1st Avenue which serve a business area, elevator, and the high school.
  • City of Wall - $600,000 for 4th Avenue which serves a business area and the elevator.
  • City of Canistota - $555,000 for 5th, 6th, 7th Avenues and Pine Street which serve a business area and schools.
  • City of Corona - $600,000 for Main Street and Railroad Avenue which serve a business area.
  • City of Kennebec - $600,000 for Main Street which serve a business area and the elevator.
  • City of Miller - $387,700 for East 4th Street which serves the school.


The Transportation Commission developed the program in the early 1980’s to improve economic development in South Dakota. Grant review and approval is completed by the SDDOT Transportation Commission with the funding coming from the State Highway Fund.  This year, $4 million was available through the discretionary funds, and the Commission awarded $3.943 million.


The economic development grants were created to help communities with the development of transportation access for agricultural, industrial park businesses or to assist smaller towns with programs for main streets, roads to elevators, schools, hospitals, and other vital community access projects. Over the past 5 years, the grant program has awarded over $20.4 million in state funds to local governments to help with local projects. 

The Transportation Commission considers applications submitted for Industrial Park and Agri-Business in the spring, summer, and fall each year. Community access grant applications are accepted in the summer and considered in the fall.  Currently, the funding levels are $2.5 million for Community Access, $1.0 million for Agribusiness, and $0.5 million for Industrial Park Grants with reallocation of any unawarded funds to the Community Access program.  The successful applicants are given two years to complete the work. However, there is flexibility to extend the agreement if factors outside the applicant’s control delay the project. A prime example of such factors would be supply chain issues.

More information regarding the grant programs and the process for applying can be found on the Department’s website at https://dot.sd.gov/doing-business/local-governments/transportation-economic-development-grants or by contacting Paula Huizenga, 605-773-6253 or Doug Kinniburgh at 605-773-4284.

About SDDOT:
The mission of the South Dakota Department of Transportation is to efficiently provide a safe and effective public transportation system.


Read more about the innovative work of the SDDOT at https://dot.sd.gov.